The Bristol office of FRP Advisory has advised Wiltshire specialist manufacturer Avon Rubber on a multi-million dollar deal to sell a non-core US division.
Avon, which makes respirators for military, homeland security and first responder customers as well as rubber products for the dairy industry, offloaded Avon Engineered Fabrications (AEF) to Illinois-based Performance Inflatables for $9.25m (£6.58m). 
AEF makes hovercraft skirts and bulk liquid storage tanks business and is a leading supplier of industrial coated fabric goods to the US military.
Melksham-based Avon Rubber began reviewing strategic options for AEF last year after its annual revenues fell to £4m from £4.8m in 2016.
Avon said this “reflected the variability in timing of certain DoD (US Department of Defense) procurement programmes for fuel and water storage tanks”.
While AEF experienced strong order intake in the final quarter of 2017 and entered 2018 with an order book worth £4m, Avon said its acquisition strategy would result in the business losing the benefits it enjoyed under the US Small Business regime in the medium term.
As a result, it brought in the Bristol office of FRP Advisory to investigate options.
FRP Advisory Bristol corporate finance partner Mark Naughton, pictured, who led the transaction supported by associate director Alex Sargeant, said: “Avon Rubber concluded that AEF was non-core to Avon Protection’s long-term strategy. 
“We were engaged to find a buyer for the business that not only delivered value for shareholders but also provided a ‘home’ for the business that would enable it to continue to prosper in the future.
“We were delighted to find and secure US-based Performance Inflatables as the new home for the business.”
Avon Rubber chief financial officer Nick Keveth added: “We are delighted to have concluded a transaction that recognises the value of AEF for Avon Rubber whilst enabling AEF to continue to thrive under new ownership.
“The outcome is a great result for Avon, and FRP has been instrumental in making it happen. The FRP team drove the deal to completion allowing senior management to continue to focus on running the core business, knowing the process was in good hands.”
AEF’s sale to Performance Inflatables, part of US investment group Pinewell Capital’s portfolio, was made on a cash and debt-free basis, giving Avon Rubber’s working capital a boost.
The deal was the second cross-border transaction FRP Advisory has advised on this year.
FRP Advisory has 48 partners and more than 300 staff operating from 19 offices across England and Scotland.
